Godavari Fertilisers suspends plans for sulphuric acid plant

Our Corporate Bureau

Mumbai, Aug 3: Godavari Fertilisers and Chemicals Ltd (GFCL) has temporarily shelved its plans to set up a sulphuric acid plant. The execution of the project has been deferred for the present due to the company’s adverse financial performance as well as the availability of imported sulphuric acid at more competitive prices, according to the company’s latest annual report.

GFCL has however obtained clearance from the Pollution Control Board and the Supreme Court for the project. The company has also decided to install a Tail Gas Scrubbing System in both trains A and B at an estimated cost of Rs 5.62 crore, with an implementation time schedule of five and half months. GFCL plans to reduce its emission levels through this measure. The efforts, in course of the past three years on the procurement practice of raw materials, has resulted in considerable savings of over Rs 11.20 crore by strengthening its supply arrangements for receipt of phosphoric acid and ammonia.

GFCL has also managed to achieve substantial efficiency improvements resulting in a highest capacity utilisation of 135.71 per cent for the year 2000-01. This was on a revised installed capacity of 5,67,000 mt. During the past fiscal, GFCL dismantled its edible oil tanks which were constructed for commercial operation at Visakhapatnam Terminal which was lying unutilised during the previous two years due to lack of demand.

The tanks were subsequently re-erected at Kakinada for receipt and storage of sulphuric acid. The company expects the investment of Rs 1.15 crore made on the shifting of the tank to have a pay-back period of less than one year.

The tanks were recommissioned in February and a saving of Rs 3.53 lakh has already accrued on account of reduced storage rents and transportation charges on 8,588 mt of sulphuric acid.